Exam Review- Principles of Business and Marketing

needs
things we need to survive; ex- food, shelter
wants
something that adds pleasure to our lives but is not necessary to survive
goods
things you can see and touch
services
wants that are satisfied through the efforts of other people or by equipment; ex- hair stylist
economic resources
the means through which goods and services are produced
factors of production
another name for economic resources: means through which goods and services are produced
natural resources
raw materials supplied by nature
human resources
the people who work to produce goods and services
labor
another name for human resources
capital resources
tools, equipment, and buildings that are used to produce goods and services
capital
money that is needed to run a business
basic economic problem
the conflict between unlimited wants and limited resources
scarcity
another name for the basic economic problem
economic system
a nation’s plan for answering the key economic questions
custom-based economy
goods are produced the way they have always been produced
direct economy
resources are owned and controlled by the government
marketplace
any place where buyers and sellers exchange goods, services, and some form of money
capitalism
means that economic resources are usually privatelyowned by individuals rather than by the government
free or private enterprise system
freedom of the individual to choose what to produce
voluntary exchange
buyers and sellers make their own economic decisions to determine what the price will be for goods and services produced and sold
demand
the quantity of a product or service that consumers are willing and able to buy at a particular price
supply
the quantity of a product or service that businesses are willing and able to provide at a particular price
standard of living
a measure of how well people in a country live; the quality and quantity of wants and needs that are satisfied
labor productivity
the quantity of a good an average worker produces in one hour
public goods
things that are needed and provided by a community and are equall accessible to everyone
worker
wants to increase his productivity to increase your earnings
consumer
buy goods and services
citizen
job is to pay taxes, vote, help the community
gross domestic product
the total value of all final goods and services produced in one year
base year
the year chosen to compare an item, such as price, to the same item in another year
gross domestic product per capita
the GDP divided by the total population of a country
business cycle
the movement of an economy from one condition to another and back again
prosperity
a phase fo the businesss cycle when most people who want ot work are working and businesses produce goods and services in record numbers
recession
a period where demand begins to decrease, businesses lower production of goods and services, unemployment begins to rise, and GDP growht slows for several quarters
depression
a phase marked by high unemployment, weak sales of goods and services, and business failures
recovery
a phase of the business cycle in which unemplyment begins to decrease, demand for godds and services increases, and GDP begins to rise again
inflation
an increase in the general price level; money is worth less
deflation
a decrease in the general price level; money is worth more
extractor
a business that grows products or takes raw materials from nature
manufacturer
a business that takes an extractor’s products or raw materials and changes them into a form that consumers can use
custom manufacturing
building a specific and unique product to meet the needs of one customer
mass production
a large number of identical products are assembled using a continuous, efficient procedure
processing
changing the form of materials so them can be consumed or used to manufacture other products
marketer
a business involved with moving goods from producers to consumers
service business
a business that does things for you instead fo making products
sole proprietorship
a business owned by one person
partnership
an association of two or more people operating a business as co-owners and sharing profits or losses according to a written agreement
corporation
a business made up of a number of owners but authorized by law to act as a single person
certificate of incorporation
a document, generally issued by a state government, giving permission to start a corporation
shareholders
people who own stock in a corporation
board of directors
a group of people elected by shareholders to guide a corporation
dividend
The part of the profits of a corporation that each shareholder receives
franchise
A written contract granting permission to sell someone else’s product or service in a prescribed manner, over a certain period of time, and in a specified area
franchisee
The person or group of people who have received permission from a parent company to sell its products or services
franchisor
the parent company that grants permission to a person or group to sell its products or services
leadership
the ability to influence individuals and groups to accomplish important goals
human relations
the way people get along with each other
position influence
the ability to get others to accomplish tasks because fo the position the leader holds
reward influence
Results from the leader’s ability to give or withhold rewards
expert influence
arises when group members recognize that the leader has special expertise in an area
identity influence
stems from personal trust and respect members have for the leader
leadership style
the way a manager treats and directs employees
tactical management
a leadership style where the manager is more directive and controlling
strategic management
a leadership style where managers are less directive and involve emplyees in decision making
mixed management
the combined use fo tactical and strategic management
marketing functions
groups of marketing activities
marketing concept
directing all marketing activities at profitably satisfying customer needs
marketing strategy
a two-step process for successfully planning and marketing products and services
target market
a group of consumers with very similar needs to whom a company can sell its products
marketing mix
the blending of four marketing elements to satisfy a target market
product
anything offered to the target market to satisfy needs including physical products and services
place
teh locations where products are sold and the ways they are made available to customers
price
what customers pay and the method of payment
promotion
the methods and info communicated to customers to encourage purchases and increase their satisfaction
buying motives
the reasons for making a purchase
channel of distribution
the path that a product travels from producer to consumer
wholesaler
a middle firm that assists with distribution activities between businesses
retailer
a business firm that sells directly to the consumer
social responsibility
the obligation of a business to contribute to the well-being of a community
non-renewable resource
a natural resource, such as gas, coal, copper, and iron ore, that cannot be replaced one used up
business ethics
rules about how businesses and their employees ought to behave
code of ethics
a statement of values and rules that guides the behavior of employees or members of an organization
conservation
the preservation and careful management of the environment and of natural resources
pollution
undesirable state of the natural environment being contaminated with harmful substances as a consequence of human activities
workplace diversity
differences among coworkers including culture, race, age, gender, economic status, and religion among other things
safety
a state of being free of danger and injury
employee wellness
programs are offered by employers to maintain a healthy workforce
international business
the business activities necessary for creating, shipping,a nd selling goods adn services across national borders
imports
goods and services bought from another country
exports
goods and services sold to another country
exchange rate
the value fo the money of one country expressed in terms of the money of another country
barriers to trade
include tariffs, quotas and embargoes
quota
a limit on the quantity of a product that may be imported and exported within a given period of time
tariff
a tax that a government places on certain imported products
embargo
stopping the importing or exporting of a certain product or service
balance of trade
the difference between a country’s total imports and total exprots of goods
interstate commerce
business transactions involving companies in more than one state
intrastate commerce
business transactions involving companies that do business only in one state
contract
an agreement to exchange goods or services for something of value
patent
the exclusive right given to a person to make, use, or sell an invention for a period of 17 years
copyright
protection of the work of authors, composers, and artists
trademark
a word, letter, or symbol associated with a specific product or company
public utility
a business that supplies a service or product vital to all people; the price charge for the service is determined by government regulation rather than by competition
monopoly
a business that has complete control of the market for a product or service
antitrust laws
laws designed to promote competition and fairness to prevent monopolies
revenue
business or government income
business plan
a written description of the business idea and how it will be carried out including all major business operations
entrepreneur
someone who takes a risk in starting a business to earn a profit